diff --git a/command/state_mv.go b/command/state_mv.go
index 7ca5fdd4b..b16f99828 100644
--- a/command/state_mv.go
+++ b/command/state_mv.go
@@ -79,13 +79,16 @@ func (c *StateMvCommand) Run(args []string) int {
 		return 1
 	}
 
+	// Get the item to add to the state
+	add := c.addableResult(results)
+
 	// Do the actual move
 	if err := stateFromReal.Remove(args[0]); err != nil {
 		c.Ui.Error(fmt.Sprintf(errStateMv, err))
 		return 1
 	}
 
-	if err := stateToReal.Add(args[0], args[1], results[0].Value); err != nil {
+	if err := stateToReal.Add(args[0], args[1], add); err != nil {
 		c.Ui.Error(fmt.Sprintf(errStateMv, err))
 		return 1
 	}
@@ -119,6 +122,29 @@ func (c *StateMvCommand) Run(args []string) int {
 	return 0
 }
 
+// addableResult takes the result from a filter operation and returns what to
+// call State.Add with. The reason we do this is beacuse in the module case
+// we must add the list of all modules returned versus just the root module.
+func (c *StateMvCommand) addableResult(results []*terraform.StateFilterResult) interface{} {
+	switch v := results[0].Value.(type) {
+	case *terraform.ModuleState:
+		// If a module state then we should add the full list of modules
+		result := []*terraform.ModuleState{v}
+		if len(results) > 1 {
+			for _, r := range results[1:] {
+				if ms, ok := r.Value.(*terraform.ModuleState); ok {
+					result = append(result, ms)
+				}
+			}
+		}
+
+		return result
+	default:
+		// By default just add the first result
+		return v
+	}
+}
+
 func (c *StateMvCommand) Help() string {
 	helpText := `
 Usage: terraform state mv [options] ADDRESS ADDRESS
diff --git a/command/state_mv_test.go b/command/state_mv_test.go
index 4cca8fbda..bec0504aa 100644
--- a/command/state_mv_test.go
+++ b/command/state_mv_test.go
@@ -327,6 +327,7 @@ test_instance.baz:
 `
 
 const testStateMvNestedModule_stateOut = `
+<no state>
 module.bar:
   <no state>
 module.bar.child1:
diff --git a/terraform/state_add.go b/terraform/state_add.go
index 54a5732a5..5aa795748 100644
--- a/terraform/state_add.go
+++ b/terraform/state_add.go
@@ -129,7 +129,7 @@ func stateAddFunc_Module_Module(s *State, fromAddr, addr *ResourceAddress, raw i
 		}
 
 		// It is! Strip the leading prefix and attach that to our address
-		extra := item.Path[len(src.Path)+1:]
+		extra := item.Path[len(src.Path):]
 		addrCopy := addr.Copy()
 		addrCopy.Path = append(addrCopy.Path, extra...)
 
diff --git a/terraform/state_add_test.go b/terraform/state_add_test.go
index 4ecf5aab0..4270ccc03 100644
--- a/terraform/state_add_test.go
+++ b/terraform/state_add_test.go
@@ -201,7 +201,7 @@ func TestStateAdd(t *testing.T) {
 
 			[]*ModuleState{
 				&ModuleState{
-					Path:      rootModulePath,
+					Path:      []string{"root", "foo"},
 					Resources: map[string]*ResourceState{},
 				},